WHAT DOES IT MEAN TO YOU IF MORTGAGE INTEREST RATES AND HOME PRICES GO UP IN
ST MARY'S COUNTY, MD?
An increase in Mortgage Interest Rates, or in home prices, will decrease the amount of "house" you can get for your money. An increase in both at the same time will have an even greater impact.
An increase in the Interest Rate only, will result in a higher monthly payment, in order to lower your monthly payment you will have to reduce the size of your loan, which means you will need to search for Houses for Sale at a lower price than with previous Interest Rates.
An increase in the price of Houses for Sale only, will result in a larger loan, which will result in larger monthly payments. Once again you will have to search for Houses for Sale at a lesser value. Homeowners, in St Mary's, MD. are getting the message that house prices are increasing and List Prices show they are expecting more, with less concessions to Buyers.
Looking at the above statements you can see, that if Interest Rates, and House prices, both rise, the house you can afford may not be the one you are looking at now.
Does this mean you should stop looking? Probably not. Interest rates have been historically low and if they rise they will go back to the once normal rate. This is true of housing prices too. BUT there will be a difference in your monthly payment AND in the amount for which you qualify.
Your first step is to meet with a Lender to determine what you can afford and to get an estimate of your monthly payment. Just be aware that the buying process may take a few months and interest rates could rise during that time. If you have already spoken with a Lender contact them and ask how the changes are effecting you.
I am Margaret C. qualified to help YOU buy your next home. YOU need a Buyer’s Agent, to represent YOU.
I can help you know the Market Value of the property you want to buy. CALL or TEXT 301 481 8407 for a FREE Consultation
ASK A QUESTION HERE RealEstate@MargaretC.com
I am a Century 21 New Millennium Real Estate Agent. Ask for MARGARET C.
I welcome your REFERRALS in Lexington Park, Great Mills, California, Hollywood, Leonardtown, Mechanicsville, PAX River, and all St Mary’s, Calvert and Charles Counties Maryland
This blog is for informational purposes only and is not intended as legal or tax advice. An Attorney, CPA or other specialist should be consulted for specific needs.